2025.05.01. 08:00
Hungarian Government Bond is an interest-bearing government security with a maturity longer than one year. Currently, it is issued with tenors of 3, 5, 7, 10, 15 or 20 years. The first auctions of the three-year and five-year fixed rate bonds were held on May 2, 1996 and January 30, 1997, respectively. The ten-year fixed rate bond was auctioned for the first time on January 14, 1999, while the first auction of the five-year floating rate bond was on March 19, 1998. The fifteen-year fixed rate bond was introduced on November 8, 2001. The 20-year fixed rate bond was auctioned for the first time on January 16, 2020. Switch auctions for Hungarian Government Bonds were introduced on November 2, 2009.
Coupon of fixed rate government bonds is announced in the respective public offering for all the subsequent interest periods. In case of floating rate bonds, however, only the method and date of coupon re-set are determined in advance and the coupon rate is announced only for the given interest period.
The coupon payment frequency of fixed rate Hungarian Government Bonds can be annual or semi-annual. Government bonds issued after January 2002 pay interest annually.
Hungarian Government Bonds have been sold through auctions since 1996. Only Primary Dealers may participate directly at the Hungarian Government Bonds auctions, investor should submit orders through the PDs.
Hungarian Government Bond will be placed with the maturities specified in the issuance plan, in the auctions held on Thursdays. Currently, the 3, 5 and 10-year fixed-rate Hungarian Government Bond auctions take place every two weeks, 15 and 20-year fixed-rate Hungarian government bond auctions every three months. Floating-rate bond auctions take place once a month, on the same day as the 12-month Discount Treasury Bill auction. The settlement is always on Wednesday on the week following the week of the respective auction.
On Wednesdays taking into account the market demand, bond switch auctions or buy-back auctions can be held.
The offered amount of the Hungarian Government Bonds at each auction are determined in line with the financing plan.
The denomination of Hungarian Government Bonds is HUF 10,000. Since 12 April, 1999 Hungarian Government Bonds have been issued in dematerialised form. Hungarian Government Bonds are listed on the Budapest Stock Exchange on the date of the settlement. Hungarian Government Bonds are listed also on the multilateral trading system called “MTS Hungary” operated by MTS SpA on the day following the publication of Public Offering preceding the date of the first placement and listed on the regulated market called “Bond Vision Market” operated by MTS SpA on the day of the first placement.
Hungarian Government Bonds are available to resident and non-resident individuals, legal entities and non-incorporated economic associations. Non-residents may buy and sell government securities throughout the whole maturity period under the terms and conditions specified in the relevant Hungarian legislation.
The relevant series of Hungarian Government Bonds issued after 1 June 2019 are exempted from the obligation to pay the social contribution tax set out in Act LII of 2018 on Social Contribution Tax.
List of Primary Dealers involved in trading of government securities:
GREEN HUNGARIAN GOVERNMENT BOND
ÁKK Zrt. held its first Green Hungarian Government Bond auction on April 22, 2021, on Earth Day. Currently, fixed rate Green Hungarian Government Bonds maturing in 2031 and 2051 are being issued. The denomination of this security is HUF 10,000.
Hungarian Government Bonds are available to resident and non-resident individuals, legal entities and non-incorporated economic associations. Non-residents may buy and sell government securities throughout the whole period until maturity under the terms and conditions specified in the relevant Hungarian legislation.
The Green Hungarian Government Bonds, similarly to the Hungarian Government Bonds will be sold through auctions, and the procedure related to the sale is the same. The dates of the auctions are published in the current issuance plan.
The amounts collected from the issuance of the Green Hungarian Government Bonds are intended to serve the partial financing of the central budget deficit and the renewal of the debt of the central subsystem of the public finances, in a way that the Issuer intends to use the proceeds to finance or refinance expenditures within the central government budget contributing the transition to a low carbon, climate-resilient and environmentally sustainable economy in line with the Green Bond Framework of the sovereign.
Other documents related to Green Hungarian Government Bonds are available here: https://www.akk.hu/green-bond.
List of Primary Dealers involved in trading of government securities: